Question

Define each term

Federal Home Loan (FHL) Bank System

Zombie Institutions

Resolution Trust Corporation

Nonprofit financial institutions

Answer 1

Federal home Loan (FHL) Bank systems are 11 government sponsored bank which provide credit and liquidity to banks to support home loan and community services.

Zombies institutions are institution which would have become insolvent had government not intervened or injected capital they have huge amount of toxic nonperforming assets in their balance sheet. The government recapitalizes the zombie banks.

Resolution Trust corporation has cease to exist and was a federal agency. It was a property management company which helped in soling savings and loans crisis in the 1980's.It helped in selling or merging failed companies and getting maximum value out of it.

Non Profit Financial Institutions basically fund for charity and private schools. They do not have to pay taxes.

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